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An article published by China Finance magazine on Saturday quoted the People’s Bank of China Governor Yi Gang as saying that the central bank won’t employ larges-scale monetary loosening like the West and instead focus on the consumer price stability and exchange rates to help the economy recover.

Key quotes (South China Morning Post)

Implementing a normal monetary policy, i.e., a positive interest rate and a rising yield curve, is suitable for providing incentives for market entities and promoting sustainable development of the economy and society.

It will also be good to improve yuan assets’ competitiveness and help us utilize domestic and external markets.

We need to maintain reasonable liquidity, money supply, and aggregated financing but must say no to a flood of money at the same time. Instead, we should target growth near potential productivity and avoid economic fluctuations.

In the long run, it [stimulus adopted by the West]will inflate debt and asset bubbles, distort economic structures, influence income distribution, and increase systematic [financial]risk.